how does debt consolidation work?

Question

Does it actually make your credit cards inactive? Does it decrease your credit score, etc? Thank you!!

Answer 1

Most of them will cut your credit cards.

your credit may go downat the beginning, but will improve afterwards.

Answer 2

If you go with a debt consolidation program you will be set up to make one payment each month thru the company to your creditors, and the benefits you will recieve are lower interest rates, no late fees, overlimit fees, lower payments, etc
Some will work with you and ask how much you can afford to pay and divide that amount and send that pymt to each creditor. The company will then send a "proposal" which is just a letter stating that you have decided to consolidate and will they accept you into the program.

FYI Most companies will not decline the proposal because they will be getting their payments vs no payments

Your credit card accounts are closed not inactive because they don't want you charging up more debt while you're recieving the benefits that you wouldn't otherwise be recieving.

It decreases your credit score temporarily but it will go back up gradually. But even if your score decreases you shouldn't be applying for new credit anyway, and by the time you're done with the program (depends on how far in debt you are) your score will be in good condition afterwards.

Research and get a reputable debt consolidation program

Try www.careonecredit.com
I have them and they have great customer service and other useful tips on their website

Answer 3

OMG... as if it isn't obvious that these are posts from people working for these companies. There hasn't been an honest answer here yet. Doing ANYTHING except paying on your debts AS AGREED will have an adverse effect on your credit score... PERIOD. If your score is already suffering, doing credit cleanup yourself is simple enough and far less costly (by thousands of dollars) than using a company. Do your research, there are MANY companies that are listed as non-profits or appear to be there to help the consumer, but if you look, you will see that EVERY SINGLE ONE has a review someplace where someone is complaining that they were screwed over or lied to by these companies just so they could get your money.

Be smart, you got here out of ignorance, educate yourself and take care of it yourself.

Here is a guide that will help --> https://www.etsy.com/listing/228586300/weathering-debt-a-self-help-guide-to?ref=market

Answer 4

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

Answer 5

I'm certain that you must find all financial answer at: lendcenter.info-

RE How does debt consolidation work?

Does it actually make your credit cards inactive? Does it decrease your credit score, etc? Thank you!!

Answer 6

It combines your credit and loan debts so that you have a lower monthly payment but it affects your score negatively because it shows that you could not pay them independently. Remember school loan consolidation doesn't work the same way and doesn't affect your credit.

Answer 7

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Answer 8

hope this would help

have a great day

Answer 9

thanks to each and every one of you guys for the replies!